Time ticking for Britons to make retirement plans

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Britons are sleepwalking into a world of retirement problems because of the effects of the recession.

The financial downturn has had a dramatic effect on the readiness of workers to retire, research conducted by MGM Advantage has found.

In fact, just one in 20 (5%) of non retired British adults aged 55 and over feel fully prepared for retirement, a dramatic drop from 2008 when 39% said they were fully readied for retirement.

Some 1.2 million (21%) of British adults aged 55 and over that are still working said they did not feel at all ready for retirement.

Across the board, a larger number of people (46%) said they were completely unprepared for retirement.

Women are more likely to view retirement with some trepidation, with half saying they had not made proper plans, compared with 42% of men.

Despite this apparent inertia, people are not seeking out advice in any great numbers.

Just 15% said they had sought financial guidance from a professional, while 8% spoke to their bank, and 6% spoke with their friends about their options.

The figures also showed that people are not only unprepared for retirement, but they also expect to work longer to make ends meet.

Over a third of people aged 65 and over still working expect to continue doing so until they are at least 71, while almost one in ten (9%) foresee working past their 80th birthday.

"You cannot start preparing for retirement too soon, whether that means paying into a pension, building a pot of savings or talking to a professional for advice," said Craig Fazzini-Jones, director at MGM Advantage.

"However, it's never too late, as even if you have not saved enough, you can still shop around for an annuity to get up to 40% more income than your pension company annuity rate.

"Those approaching retirement should act now and carefully review their finances taking care to choose the best annuity to make their retirement savings work hard for them."

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